Best Money Moves to Make Before Dec 31, 2025

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Best Things to Do With Your Money Before Dec 31, 2025 Best Things to Do With Your Money Before Dec 31, 2025 TL;DR Summary December 31 is a hard cutoff for many U.S. tax, credit, and banking rules. A short year-end checklist can still prevent avoidable taxes, fees, and interest. Most actions are about timing and review—not making risky financial moves. In the United States, December 31 carries unusual weight in personal finance. Many financial rules follow the calendar year, not personal circumstances. Miss the deadline, and the opportunity is often gone for good. That’s why searches for “before December 31” surge every year. People are not chasing complex strategies—they are trying to avoid losses caused by timing. This checklist focuses on realistic, last-window reviews that may still make a difference before 2025 ends. 1) Review Tax Moves Locked to the 2025 Calendar Year Some tax-related actions are tied strictly to ...
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1099-K in 2026: 5 Side Hustle Tax Mistakes to Avoid

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1099-K Reporting Expansion 2026: Side Hustle Tax Mistakes

1099-K in 2026: The Costly Side Hustle Tax Mistakes Many Sellers Make

TL;DR Summary
  • The IRS is continuing its phased expansion of Form 1099-K reporting rules into 2026.
  • Side hustlers and online sellers often misunderstand what a 1099-K really means.
  • Gross vs net income confusion is the #1 cause of tax notices.

Form 1099-K has become one of the most confusing IRS forms for side hustlers and online sellers. As reporting thresholds expand, more taxpayers are receiving 1099-Ks for the first time heading into the 2026 tax year.

Many assume that receiving a 1099-K automatically means they owe tax on the full amount shown. This misunderstanding is one of the most common triggers for IRS notices.

What Changed in 2026 and Why 1099-K Matters More

Form 1099-K is issued by payment platforms such as PayPal, Venmo, Stripe, Square, Etsy, and eBay. It reports total payments processed—not profit.

  • Reports gross payments, not net income
  • Fees, refunds, shipping not deducted
  • IRS automatically matches the form to returns

Who Is Most Affected by 1099-K Expansion

  • Side hustlers paid via apps
  • Online sellers with high gross volume
  • Casual resellers selling used items
  • Mixed-use accounts (personal + business)

Example: A seller receives a 1099-K for $18,000 in gross payments, but actual profit after fees and costs is far lower.

The Biggest 1099-K Mistakes Side Hustlers Make

  • Assuming gross payments equal taxable income
  • Ignoring the form entirely
  • Failing to track expenses
  • Mixing personal and business payments

Your Options in 2026: Practical Steps

  • Download platform transaction reports
  • Separate business and personal accounts
  • Track fees, refunds, shipping, inventory
  • Reconcile totals before filing

Common Pitfalls and Red Flags

  • 1099-K income not reflected on return
  • Large gross receipts with no expenses
  • Duplicate platform reporting

Quick Q&A: 1099-K in 2026

  • Q: Does a 1099-K mean I owe taxes?
    A: Not automatically. Taxes are based on net profit.

Disclaimer: This article is for general information only and is not tax, legal or financial advice.

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